Tag: SSY interest rate

  • Sukanya Samriddhi Yojana (SSY) calculator: Your child might have 51 lakh at age 21

    SSY calculator: Sukanya Samriddhi Yojana or SSY is a authorities of India-backed small saving scheme that helps dad and mother to save lots of money for future financial requirements of their girl child. In this completely risk-free funding selection an investor is allowed to take a place till its girl child turns into 14 years of age. However, one can be able to withdraw 50 per cent maturity amount after the girl child develop to be 18 years of age and full maturity amount when the girl turns into 21 years of age.

    In SSY scheme, Government of India is giving SSY charge of curiosity of 8 per cent yearly, which is paid on quarterly basis. The central authorities launched Sukanya Samriddhi Yojana charge of curiosity of 8 per cent epr annum for April to June 2023 quarter. Earlier it was 7.60 per cent yearly. So, in Q1FY24, Government of India (GoI) raised SSY charge of curiosity by 40 bps, which is an environment friendly data for SSY accountholders.

    Sukanya Samriddhi Yojana calculator

    As per the SSY calculator, if a person begins investing in Sukanya Samriddhi Yojana account immediately after the beginning of its gill child, he or she can be able to make investments for 15 years as a result of the SSY scheme permits an investor to take a place on this small saving scheme till its girl develop to be 14 years of age. As it permits an investor to claim income tax revenue beneath Section 80C of the income tax act, if an investor invests ₹10,000 month-to-month then he can be able to make investments ₹1.20 lakh yearly in 12 equal instalments.

    As per the SSY calculator, if an investor don’t go for 50 per cent maturity amount after its girl child turns into 18 years of age, he or she can be able to get a maturity amount of ₹51,03,707 or spherical ₹51 lakh. In this ₹51 lakh, one’s full funding might be ₹18 lakh and the curiosity earned after the 21 years of maturity interval might be ₹33,03,707 or spherical ₹33 lakh.

    See SSY calculation underneath:

    View Full Image

    Photo: Courtesy HDFC Bank Sukanya Samriddhi Yojana calculator

    Here, Sukanya Samriddhi Yojana charge of curiosity has been assumed 7.6 per cent on your full interval as a result of it retains on altering and we now have now saved the speed of curiosity at lower ranges.

    So, if an investor begins investing ₹10,000 month-to-month in Sukanya Samriddhi Yojana account immediately after the beginning of 1’s girl child, then the girl will in all probability be a millionaire on the age of 21.

    Income tax revenue

    As talked about above, an investor can declare income tax revenue on as a lot as ₹1.50 lakh invested in SSY account in single financial 12 months beneath Section 80C of the income tax act. The SSY curiosity earned and SSY maturity amount will in all probability be 100 per cent tax exempted as correctly. So, Sukanya Samriddhi Yojana is an EEE funding instrument.

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  • Mutual funds, NPS to PPF — high 5 tax saving funding instruments to save cash

    Income tax calculator: As we’re about to enter new 12 months 2023, it is opportune for an incomes particular person to know the tax saving funding instruments for beginning a contemporary funding as there is only one quarter left in FY23. So, from an earnings taxpayers’ perspective, there’s simply thr4ee months left to exhaust the obtainable funding restrict to assert earnings tax exemption whereas submitting earnings tax return for FY2022-23.

    Here we checklist out high 5 tax saving funding choices the place an incomes particular person can park one’s cash for increased return and save earnings tax outgo in present fiscal:

    1] ELSS mutual fund: Under Section 80C of the earnings tax act, an earnings tax payer can declare tax exemption on as much as ₹1.5 lakh invested in ELSS mutual funds. This is likely one of the fairness mutual funds that tends to offer highest return amongst all obtainable tax saving funding instruments. This mutual fund permits an investor to take a position both one time upfront or in SIP mode. However, whereas investing in ELSS mutual funds, an investor should know that it has a lock-in interval of three years. The investor also needs to know that whereas claiming tax exemption beneath Section 80C, the utmost restrict would come with different heads like EPF, PF, PPF (Public Provident Fund), and many others.

    Speaking on ELSS mutual fund return, SEBI registered tax and funding skilled Jitendra Solanki mentioned, “ELSS mutual funds are like any other equity mutual fund. If an investor invests in this equity fund for long term, one can expect at least 12 per cent return on one’s money and beat the average inflation growth during the investment period with ease.”

    2] National Pension System or NPS: This one of many distinctive tax saving funding device, which supplies you publicity in each debt and fairness through single funding. An NPS account holder can select debt and fairness ratio on the time of account opening. Though, an investor cannot get greater than 75 per cent fairness publicity on one’s cash. An investor can declare earnings tax exemption on as much as ₹1.50 lakh in a single monetary 12 months beneath Section 80C whereas a further ₹50,000 exemption is allowed beneath Section 80 CCD (E). So, those that have exhausted their Section 80C restrict by investing in ELSS mutual fund or different tax saver funding instruments, they’ll go for the NPS account to avail this extra ₹50,000 restrict obtainable for tax exemption.

    Speaking on NPS scheme, Kartik Jhaveri, Director — Wealth Management at Transcend Capital mentioned, “NPS account holders can have more than 75 per cent equity exposure. but, to keep a balance between equity and debt, it is advisable for NPS account holders to keep 50:50 ratio. In long term, investors can expect 12 per cent return on equity and 8 per cent return on debt, leading to near 10 per cent [(12/2) + (8/2)] net return on one’s NPS investment.”

    3] Public Provident Fund or PPF: This is likely one of the authorities backed small saving schemes, which is 100 per cent danger free. PPF rates of interest are given on quarterly foundation and compounded on yearly foundation. The authorities of India introduced PPF rate of interest on the finish of each quarter. For January to March 2023 quarter, the central authorities has introduced 7.10 per cent PPF rate of interest, retaining it unchanged for the upcoming quarter starting with the brand new 12 months 2023. PPF funding additionally permits a taxpayer to assert earnings tax exemption on as much as ₹1.5 lakh in single monetary 12 months beneath Section 80C.

    4] Post workplace time period deposit: The central authorities has elevated tax saving time period deposit rate of interest from 6.70 per cent to 7.0 per cent whereas asserting small-saving schemes rate of interest for January to March 2022 quarter. Retail banks may take time in passing on this profit, so these mulling to open a tax saving time period deposit account, they’re suggested to open it in publish workplace as it’s instantly ruled by the federal government and it might develop into obtainable routinely with the start of recent 12 months 2023. However, a time period depositor should know that tax saving time period deposit has a lock-in of 5 years.

    5] Voluntary Provident Fund or VPF: .f you might be falling beneath the tax bracket and your Section 80C restrict of ₹1.5 lakh goes unexhausted. You ought to ask your employers for an extra EPF or PF deduction known as VPF. In this VPF choice, your recruiter want to not make investments contributory quantity on your additi9onal PF contribution however it is possible for you to to avoid wasting extra in your retirement fund availing ‘EEE’ profit in your PF contribution. One ought to know that VPF would allow you to get highest return from the risk-free funding device. PF rate of interest for FY2022-23 is 8.10 per cent.

    Apart from these 5 tax saving choices, if somebody is blessed with a daughter, then Sukanya Samriddhi Yojana (SSY) can be an excellent choice to take a look at. A SSY account holder can declare earnings tax exemption beneath Section 80C of the earnings tax act on as much as ₹1.50 lakh funding in single monetary 12 months.

    Disclaimer: The views and proposals made above are these of particular person analysts or broking corporations, and never of Mint. We advise buyers to test with licensed specialists earlier than taking any funding choices.

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  • PPF, NSC, Post Office Scheme rates of interest introduced. Full listing right here

    Ahead of ushering into new monetary yr, the Government of India (GoI) on yesterday introduced to maintain small saving schemes rate of interest unchanged for Q1FY23. These small saving schemes rate of interest consists of Public Provident Fund or PPF rate of interest, National Savings Certificate or NSC rate of interest and submit workplace small saving scheme rates of interest.

    The Ministry of Finance introduced concerning the GoI’s choice by a notification dated thirty first March 2022 citing, “The rate of interest on various small savings schemes for the first quarter of the financial year 2022-23, starting from April 1, 2022, and ending on June 30, 2022, shall remain unchanged from the current rates applicable for the fourth quarter (January 1, 2022, to March 31, 2022) for FY 2021-22.”

    So, PPF rate of interest will proceed to yield 7.10 per cent in April to June 2022 quarter whereas NSC rate of interest would proceed at 6.80 per cent each year. Those who’ve Sukanya Samriddhi Yojana or SSY accounts would proceed to get 7.60 per cent SSY rate of interest on their deposits in first quarter of the brand new monetary yr.

    Similarly, submit workplace small saving investor will proceed to get return on their cash they have within the not too long ago ended quarter.

    After the issuance of contemporary notification by the Ministry of Finance, one yr submit workplace time period deposit will proceed to ship 5.50 per cent return on an investor’s deposits in April to June 2022 quarter. Post workplace time period deposits for one to 5 years would proceed to ship 5.50 per cent to six.70 per cent each year. Interest price on 5 yr Post Office RD will stay at 5.80 per cent each year.

    The rate of interest on 5-year senior citizen saving scheme would additionally proceed to ship 7.40 per cent for the primary quarter of recent fiscal. However, financial savings rate of interest would proceed at 4 per cent each year.

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